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    Higher Guidance and Preferred Payout Could Be A Game Changer For Energy Transfer (ET)

    Simply Wall St·07/23/2026 23:28:07
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    • In recent days, Energy Transfer LP announced a quarterly cash distribution of US$0.2111 per Series I Preferred Unit, payable on August 14, 2026 to unitholders of record as of August 4, 2026, while also updating the market on its large, fee-based midstream network and raised 2026 EBITDA guidance.
    • Together with upbeat analyst views on its earnings outlook and industry support from growing data-center gas demand, these developments underscore how Energy Transfer’s contracted infrastructure footprint is influencing expectations for its cash flow profile.
    • Against this backdrop of higher EBITDA guidance and analyst optimism, we’ll explore how the news affects Energy Transfer’s existing investment narrative.

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    Energy Transfer Investment Narrative Recap

    To own Energy Transfer, you have to be comfortable with a capital intensive, fee-based midstream business that depends on long lead-time projects and stable contracted volumes. The latest preferred distribution declaration and higher 2026 EBITDA guidance support the near term cash flow story, but they do not materially change the key catalyst of executing growth projects on time or the biggest current risk around permitting, cost overruns, and utilization on its large organic pipeline and LNG developments.

    The most relevant piece of recent news here is management’s raised 2026 EBITDA guidance, tied to earlier optimization benefits and expected volume growth. This guidance update sits right at the heart of the bull case that new gas pipelines, data center related demand, and NGL export expansions can fill Energy Transfer’s extensive system, while still leaving investors exposed to execution and regulatory risks on those same multi billion dollar projects.

    Yet even with higher EBITDA guidance, investors should be aware that the long permitting and build timelines on projects like Lake Charles LNG and new gas pipelines leave Energy Transfer exposed to ...

    Read the full narrative on Energy Transfer (it's free!)

    Energy Transfer's narrative projects $116.5 billion revenue and $6.2 billion earnings by 2029. This requires 8.1% yearly revenue growth and a $2.1 billion earnings increase from $4.1 billion.

    Uncover how Energy Transfer's forecasts yield a $23.59 fair value, a 16% upside to its current price.

    Exploring Other Perspectives

    ET 1-Year Stock Price Chart
    ET 1-Year Stock Price Chart

    Eight members of the Simply Wall St Community currently see Energy Transfer’s fair value between US$21 and about US$51, reflecting a wide spread of personal views. You can compare those against the catalyst of large pipeline and export projects that still depend on timely approvals and execution, which could meaningfully influence how the business performs over time.

    Explore 8 other fair value estimates on Energy Transfer - why the stock might be worth over 2x more than the current price!

    The Verdict Is Yours

    Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.